GM told to brace itself for bankruptcy filing

By IBT Staff Reporter On 04/13/09 AT 9:43 PM

On Monday the US Treasury Department told General Motors to make all necessary preparations for a possible bankruptcy filing by June 1, even though the troubled automaker insists it can restructure its business on its own, The New York Times reported.

The newspaper did not name people but said they had “knowledge of the plans.

According to the newspaper, the instructions had been conveyed by members of President Barack Obama’s automotive task force after spending last week in meetings.

According to the paper, the talks are expected to continue this week.

The troubled automaker was already granted 13.4 billion dollars in federal aid, and its managers insist the company's image should not be damaged.